SAP Simple Finance Add-on For SAP Business Suite Powered By SAP HANA 1. .

Industry Solutions released with the SAP Simple Finance add-on Aerospace & Defense (sub set of scenarios, details can be found in SAP Note 2046809) Automotive (sub set of scenarios, details can be found in SAP Note 2046809) Banking (with restriction, details refer to SAP Note 2059467) Chemicals (restricted by unsupported feature listed as below, esp. JVA) Consumer Products Defense & Public Security (not supported, details can be found in SAP Note 2053487) Engineering Construction & Operations Higher Education & Research (details can be found in SAP Note 2053487) High Tech Industrial Machinery, Components Insurance (sub set of scenarios, details can be found in the related SAP Note 2025786) Life Sciences Media (details refer to SAP Note 2049162 & 2049241) Mill Products Public Sector, including Collections & Disbursement (PSCD) (SAP Note 2053487) Professional Services Retail (details refer to SAP Note 2051279) Sports & Entertainment Telecommunications (sub set of scenarios, SAP Note 2050401) Travel & Transportation Utilities (sub set of scenarios, SAP Note 2050021) Wholesale Distribution

What is Simple Finance? What is our G/L strategy? What is Simple Finance-add-on? Is program set up done? What is Central Journal? What is In-Memory Computing? What are our business benefits? Are we on track? What are our IT benefits? Which quick wins have What will change? we achieved? How could our Business Case look like? Which transformation options do we have? What is our best fitting path Did we successfully What is the probable impact on transform our project landscape (organization/ Which is the preferable landscape/ deployment (Cloud/On business model) Premise/ Central Journal) Common understanding developed Business Benefits evaluated Transformation path clarified Deployment option decided Preparative steps planned Q-Gate process completed Journey to SAP Simple Finance on HANA – Major Milestones Transformation Objectives met Target Scenario As-Is-Situation Typical Questions along the journey

Related SAP Links Where What Link SAP Service Marketplace Hybrid Scenarios http://service.sap.com/publ ic/hybrid SAP Help Help Page for SAP Simple Finance add-On for SAP Business Suite powered by SAP HANA http://help.sap.com/sfin100 SAP Service Marketplace Administrator's Guide for SAP Simple Finance add-on 1.0 https://websmp104.sapag.de/erp-inst SAP Service Marketplace Note 1976487 Smart Financials Package 1.0: Information on the adjustment of customer-specific programs in line with simplified data model of Smart Financials http://service.sap.com/sap/ support/notes/1976487

Summary You should now able to: Understand the SAP HANA application benefits on a high level Understand the difference between SAP Simple Finance and the SAP Simple Finance add-on for SAP Business Suite powered by SAP HANA 1.0 Explain the high level requirements for migration to the SAP Simple Finance addon for SAP Business Suite powered by SAP HANA 1.0

Lesson 2 Overview of the SAP Simple Finance add-on powered by SAP HANA Enhancements to Financials Database tables

Lesson 2: Describing enhancements to Financials Database tables

Learning Objective After completing this lesson, you will be able to: Explain the term logical document. Explain the motivation for adopting the logical document. Describe the new structure in the financials tables. Understand the restrictions that apply with the logical document. Explain the changes to financials index and total tables created by the SAP Simple Finance add-on Explain the benefits these changes bring with them.

Scenario You want to understand in detail the underlying architecture changes to the SAP ERP application from the installation of the Simple Finance add-on. You want to understand the potential benefits these changes bring and also make sure your custom developments won’t be disrupted with the migration.

A single source of truth for Accounting Logical link between FI line item (BSEG) and CO line item (COEP) to create “one document” view New reports allow drill-down from aggregate profit and loss statement to detailed line items by customer/product/region etc and detailed querying across all spend categories Line Item documents journal entry and provides link to original document e.g. sales transaction, material movement Combined line item document allows selection from around 400 fields using the speed of HANA Account as leading dimension for both “FI” and “CO” views. Additional dimensions in FI: company code, business area, segment, profit center, Additional dimensions in CO: cost center, order, WBS element, product, customer, region,

Link between FI and CO with the classic logic Header Table CO line item nr. 123 Management Accounting COBK Cost element: 400000 Cost center: Muster Line Item Table 100,- COEP Header Table FI line item nr. 10 Financial Accounting BKPF Vendor: 4711 100,Cost account: 400000 Line Item Table BSEG MM PP SD HR 100,-

Limitations with the classic logic Up to now, the line items between FI and CO have been linked to each other only on header level. This has the following adverse effects: High reconciliation effort: It is hard to reconcile documents of different granularity e.g. payroll records with more FI items than CO items. Reporting and reconciliation across financial applications was difficult – especially between FI and CO-PA. No overall reporting: Bringing together the legal view with details of responsibility and/ or market segments at a glance was not available.

Link between FI and CO with the new logic Management Accounting CO line item nr. 123 COBK Cost element: 400000 Cost center: Muster Line Item Table 100,- COEP Header Table FI line item nr. 10 Financial Accounting BKPF Vendor: 4711 100,Cost account: 400000 Line Item Table BSEG MM PP SD HR 100,-

Additional link to CO-PA segment table Account Based Profitability CE4xxxx Analysis (CO-PA) CO-PA Object number: 4711 Material: F-01 Material group: FERT Sales org.: S001 Header Table Management Accounting COBK CO line item nr. 123 Cost element: 800000 -100,CO-PA Object num. 4711 Line Item Table COEP Header Table Financial Accounting FI line item nr. 10 Receivables: 100,Revenues (account 800000) 100,- BKPF Line Item Table BSEG MM PP SD HR

Financial Planning: From Silos to Real Integrated Planning Classic Financial Planning

Table view: Link between FI, CO and CO-PA line item level FI CO CO-PA (account based) Header Table BKPF Fields: AWSYS AWTYP AWKEY Header Table COBK Fields: AWSYS AWTYP AWKEY Line Item Table Line Item Table BSEG COEP Fields: AWSYS AWTYP AWKEY POSNR Fields: AWSYS CE4KEY AWTYP AWKEY POSNR Characteristics Table CE4XXXX Field: PAOBJNR

Restrictions You should be aware of the following restrictions with the logical document: The link between CO and FI is only supported for postings into the leading ledger. Table BSEG ADD, the table where documents posted to the non leading ledgers are stored is not linked to table COEP. The business function ‘Multiple Valuation of Cost of Goods Manufactured’, introduced with SAP ERP 6.0 EhP5, is not supported. The link between New-G/L line items (in table FAGLFLEXA) and BSEG are not changed. The HANA view for the logical document only supports the operating concern ‘SFIN’* which is delivered as part of the SAP Simple Finance add-on. FI summarization is deactivated in SAP Simple Finance. Summarization does not work if each line item has a unique POSNR. The reconciliation of FI and CO line items would not work if the FI line items were summarized. *You can use your own Operating Concern under certain prerequisites check note 2042464

Redundancy of Totals and Index Tables Classic FI, CO SAP Simple Finance add-on Totals tables Index tables Document tables Document tables

Indexes and Totals vs Document Level Financials ERP Financials any classic DB Real World Process e.g. Invoice Fixed FI Document Real World Process e.g. Invoice Totals & Indexes Financial Accounting Processing Data Redundancy Reconciliation Effort Minor Flexibility Pre-Defined Aggregates CO Document SAP Simple Finance add-on Flexible Fixed Totals & Indexes Flexible Totals for Financial Accounting FI Document CO Document Analytics Management Account. Higher Throughput Reduced Processing HANA views on the fly Totals for Management Accounting Analytics Reconciliation Higher Flexibility Reduced Data Volume High Performance

List of Obsolete Tables FICO (replaced by CDS views) Index tables removed Index for G/L Accounts BSIS Aggregate tables removed General Ledger: Totals GLT0 BSAS Index for G/L Accounts (Cleared Items) FAGLFLEXT New General Ledger: Totals BSID Index for Customers KNC1 Customer master (transaction figures) BSAD Index for Customers (Cleared Items) LFC1 Vendor master (transaction figures) KNC3 Customer master (special G/L transaction figures) BSIK Index for Vendors BSAK Index for Vendors (Cleared Items) LFC3 Vendor master (special G/L transaction figures) FAGLBSIS Index for G/L Accounts – New G/L COSS Cost Totals for Internal Postings FAGLBSAS Index for G/L Accounts – New G/L (Cleared Items) COSP Cost Totals for External Postings

Non-Disruptive update using compatibility views for previous total/index tables The index and totals tables listed in the previous figure have been replaced by compatibility views. These views have the same name as the original tables, contain the same fields and are there to allow for a smooth transition to the new data model. Standard as well as partner and customer coding can continue to work uninterrupted and can be updated to take advantage of the new architecture when this is decided according to the business needs.

Cash Management on HANA Addressed Business Case Bank Account Management Renewed Cash Positions Real-time Cash Flow Analysis and Liquidity Forecasting Group-wise Liquidity Planning Bank Risk Analysis “Cash Manager” Enterprise Dashboard 2.0 Key Benefits Capabilities High performance for real-time cash flow analysis and liquidity forecast. No more batch job in Cash Management Separated Bank Accounts with G/L Accounts. Bank Account creation and modification approval process Cash Manager owned and controlled Bank Accounts Signatory and authorization management of bank accounts Enable Predictive and Planning tasks for cash managers to support daily decision making and actions. Root-cause analysis of cash-in and out per bank account and liquidity item Embedded liquidity planning and built-in variance analysis Much more attractive and desirable user experience including Cash Manager mobile app

List of Obsolete Tables in Cash Management FDD1 FDES FDESDI ST Forecast-Loan line items-Memo records FDSB Summary records for G/L accounts Forecast: Memo Records FDSB2 Totals Records for G/L Accounts (As of Release 604) FDSBDIST Summary Records for G/L Accounts FDFIEP FDSP Adjustment Items from Document Splitting FI Line Items (OP of Deb/Cred for Drilldown) FDSR Summary records for planning groups FDSR2 Totals Records for Planning Groups (As of Release 604) Totals records for planning groups FDI1 FDLF FDLF2 FDM1 FDM2 FDMV FDRE FDS1 FDS2 Memo records (distributed) Line Item for RE Classic Planning Records Line Items for Agency Business Line Items for Agency Business (As of 604) Forecast: Line Items of MM Documents Line items from MM purchase requisition Line Items of Earmarked Funds Line Items from RE-FX (Real Estate) Forecast: Line Items of SD Documents Line Items in SD Documents (from Release 4.0) FDSRDIST FDT1 FDW1 Line Items for Forex, Money Market, Derivatives Forecast - Securities Line Items- Planned Flows

Summary You should now able to: Explain the term logical document. Explain the motivation for adopting the logical document. Describe the new structure in the financials tables. Understand the restrictions that apply with the logical document. Explain the changes to financials index and total tables created by the SAP Simple Finance add-on Explain the benefits these changes bring with them.

Unit 2: Migration to the Simple Finance add-on

Lesson 1 Customizing the system for the migration to Simple Finance add-on Migrating from classic GL to New GL Analyzing the migration steps to the simple finance add-on

Lesson 1: Customizing the system for the migration to the Simple Finance add-on

Learning Objective After completing this lesson, you will be able to: Describe the process of migration to the Simple Finance add-on Understand the necessary preparation steps

Scenario You want to plan and prepare for a migration to the SAP Simple Finance add-on. You want to get an outline of the project steps involved and an understanding of the high level mandatory customizing changes the migration will bring to the system.

Procedure: Migration to Simple Finance add-on Preparation Installation Data Transfer* Data Migration Post Processing *If currently using Classic G/L Train those involved in SAP new g/l accounting* Create a (small) blueprint for new g/l configuration* Perform reconciliation, period-end activities, and gather reporting snapshots for before/after comparisons Install the Simple Finance add-on Create the back-up tables Perform reconciliation and checks on data values after install Customize general ledger in New GL Accounting Populate the relevant new g/l tables Perform reconciliation and checks on data values after install Migration of financial data (for GL/AP/AR/CO) Reconciliation & checks after migration Transfer data to cold database area. Update FI-AA configuration Run reconciliation reports to check data consistency Perform process tests to ensure successful migration

Overview Migration Project Preparation Phase In the project preparation phase, the system activities required from an application consultant perspective are the following: Perform period-end closing activities in asset accounting Run reconciliation reports to ensure consistent data Run special check report for FI-AA installed via note 1939592 Execute and save financial reports to allow comparison of financial KPI‘s after migration Perform customizing for New GL (if necessary) and customizing for initial balance carry forward (in test system)

Overview add-on Installation Phase The steps to install the Simple Finance add-on are performed by a system administrator. With the installation the following major activities are performed in the system: Creation of the backup tables for totals and index tables. Creation of SAP HANA views with the same names in their place.

Overview Data Transfer Phase The system steps you need to perform at this phase are: Configure new General Ledger Accounting Execute check reports to ensure successful migration. Finish by transporting the configuration settings to your production system.

Overview Data Migration Phase The system steps you need to perform at this phase are: Reconcile documents and transaction figures before data migration Execute a document-based transfer of opening balances for new General Ledger Accounting. This creates line items in new General Ledger Accounting. Perform consistency checks to compare against the status before the migration.

Overview Post Processing Phase The system steps you need to perform at this phase are: Run Reconciliation reports to check data consistency and execute financial reports and compare financial KPI‘s Perform process tests to ensure successful migration (this of course should have first been done in the test environment) If using Data Aging, create cold partitions for the backup tables of the indexes Perform customizing for new Asset Accounting and activate. Please follow the Sequence of migration activities according to the Migration Guide. The sequence within the IMG is not the overall sequence across components!

Summary You should now able to: Describe the process steps for migration to the Simple Finance add-on

Preparation Phase

Scenario You are currently running a system on classic G/L and want to upgrade to use the functionalities of the simple finance add-on. You understand that to perform this a technical migration to new G/L accounting is needed. You want to know if your current system configuration meets the prerequisites for migration to new gl. You are also interested to understand the scope of the changes the migration to new GL brings. Finally, you want to understand what customizing and migration steps are required.

Preparation of Migration - Details Preparation Installation Data Transfer (optional) Data Migration Post Processing

System Landscape Starting point to outline migration to Simple Finance add-on in our training system: System: T68 and Client: 001 Company Code: 1000 Classic GL Classic Asset Accounting Accounts Approach to parallel accounting Enterprise extension EA-FIN Financial Extension is active New Depreciation Engine is active Migration can be performed at any period end. Special Ledgers: Cost of Sales Accounting Preparation of Consolidation Profit Center Accounting (EC-PCA) Test data: approx. 500.000 G/L accounting documents and a few special entries for Asset Accounting (posted starting January 2013 and up to September 2014).

Migration Project Preparation Phase Project preparation in more detail (Simple Finance add-on already installed): Run special check report RASFIN MIGR PRECHECK for FI-AA installed via note 1939592 Very important: Perform period-end closing activity in asset accounting Periodic Asset Postings RAPERB2000 Run reconciliation reports to ensure consistent data Report SAPF190 Financial Accounting Comparative Analysis Execute and save financial reports to allow comparison after migration Report RFBILA00 Financial Statements and RFSSLD00 G/L Account Bala

SAP Simple Finance is for SAP customers, who want to gain the business benefits of these solutions as a managed service in the SAP HANA Enterprise Cloud with the simplicity and elasticity of a cloud deployment. The installation of the SAP Simple Finance add-on for SAP HANA is for customers who do not want to move to the Cloud yet.